For years Matt resisted becoming a real estate agent preferring to be an executive at Redfin but he recently caved in the spring of 2014 and became an agent. If you're interested in working with Matt, drop him a line at matt@urbnlivn.com. You can also find Matt on Twitter or skiing.

uwp

Love the Queen Anne High designs, but expensive units and HOA dues. Plus all the view units were gone last I heard. I wonder what comes up on the auction block.

TOKYO64

There are still a lot of nice units left. Mostly in the Industrial Arts Building. There is one unit, the Penthouse, in the original building with sweeping views and you can alter the interior if you need to because there is all kinds of space. The jazz would sound good on the hard wood floors and the wine glass dinner cooking experience with the nice views just can't be beat!

EconE

That auction link is a hoot.

I love the disclaimer “this is simply an owner who wants to sell his property”.

Ummm…it's a flipper…holding two units.

Let's talk price.

Interesting list of “comps” I must say. The list says “recent” comps yet some of the purchases are back in 08/2007.

Get real.

Closest *true* recent comp I see is the 792 sf Canal Station II unit that went for $275k 01/2009. Sure, it's a little smaller, but the appliances are nicer, the counters are slab instead of tile (grout sucks). I wonder if that $275k included all the seller paid closing costs that our “auction” subject chooses not to include with the high bid. Of course…you have to pay additional to have the seller pay your closing costs.

How moronic is that. Just pay your own da#n closing costs. Perhaps I should pay all the sellers costs when I buy…you know…commission, capital gains, excise tax etc. and have the sale recorded at a really really low price.

How would the RE industry like that?

Not much?

Didn't think so. So I guess you can understand when potential buyers are perturbed when the agents “game” the numbers.

I doubt this place even sees the 279k minimum bid. (plus all those extra costs the seller wants you to pay so that the recorded price is higher).

Just my 2c.

EconE

funny…one of the “active comps” is actually the unit being auctioned.

uwp

That's pretty good right there.

uwp

So the Canal Street unit's auction was canceled. I wonder what went wrong.

John

The Truth about Real Estate Auctions and why they might not be right for you.

From the reviews Iâ€™ve read, what Iâ€™ve gleaned of the auction process and the final sales statistics, auctions might and might not be a good deal for a buyer. Are they right for you?

Let â€˜s start with the problem â€“ unsold homes. Why are they unsold? Price. Itâ€™s a simple as that.

Like you may here from practically any real estate professional, price cures all. Even in this economy we still see buyers competing over very good deals on good homes. No matter where the home is, what shape itâ€™s in or what our economy is like, there is a price that will get that home sold as long as the public knows about it.

Price is dictated by supply and demand. If you have a ton of inventory, the price is low. If you only have a couple of something or if anytime something comes on the market itâ€™s swept up with fervor, the price inevitably gets higher.

Right now, we have a TON of inventory. That coupled with our economy and sellers not wanting to loose their shirts, makes pricing a little bit of a moving target. You might just then say, that the price of a home is what someone is willing to pay for it in an arms length transaction.

So why auctions? Is it because there is no other way to sell the property and the controlling entity wants to be done with it at any cost? Youâ€™d think so, but not exactly.

Auctions are just another marketing strategy geared towards getting the seller maximum returns in the least amount of time. Itâ€™s true that sellers want to be done with the project in the least amount of time and that they are willing to except prices below what they are currently listed at but, usually not by as much as youâ€™d think. And, if they donâ€™t get what they are expecting, they take them off the auction block and go back to traditional sales. You can see an instance of this at Seventeen07 and THE 400 in Bremerton.

At Seventeen07 the bidding was getting so low by the end they took homes off the auction block because they knew they wouldnâ€™t get what the seller needed out of them. Which, I might add, was nowhere near what the starting bids were.

At THE 400 there were some good deals to be had. The final bids were near the starting bids and far from what they were originally listed at however, many of the winning bidders were not able to purchase the homes because the bank would allow them to be sold for those low prices. Additionally, there are sometimes hidden reserve prices which, if the bids are not at or above those prices, the seller does not have to sell. Just like Ebay.

When Auction companies approach sellers or the banks with this concept they show them statistics of other successful auctions at which homes sold for approximately 85 to 90% of the original list price (which was priced to high in the first place or it would have sold). They show them that auctions breed urgency in buyers and fear of loss. This is true.

Buyers get so caught up in the â€œcompetitionâ€ and â€œfear of lossâ€ when the bidding is done, they may end up very close to original list price which may or may not have been near market value. You can see an instance of this in THE PRESS condominium auction where the homes ended up selling for 90+% of the original list price.

The way auctions are run these days is a very analytical and precise. They valuate based on number of registrations, number of pre-qualifications, which homes are being sought after based on buyer registrations then calculate how much interest there will be for any given unit and roughly what it will bring at auction. They take the homes with the least amount of interest of the auction block to ensure maximum interest in the ones that are left. They then sell the ones removed the traditional way.

But getting a home at 80-90% of the original list price is still a good deal right? Not in my opinion.

First, it maybe 80-90% of the original list price but like I said before, the original list price was too high to begin with or the home would have sold traditionally. So, really it ends up being more like 90-100% of MARKET VALUE.

Second you donâ€™t get any of the protections you might see in a regular purchase. Auction homes are sold AS-IS. There is no chance for an inspection, title review, homeowners associate review etc. You could do it before hand but not many people spend money on a home before they know they can have it and many donâ€™t know do it because they fail to use the expertise of a seasoned realtor.

Third, you wonâ€™t be able to ask the seller to pay for closing costs, HOD, interest buy-down points, etc. which for many itâ€™s nice to not have to take the money out of your own pocket.

And lastly, the other homes you may have been considering at other communities could possibly be sold to someone else for a great deal. If you donâ€™t win the auction you were after, of for some reason they wonâ€™t let you have your winnings (for reasons stated above), you are now just SOL.

Still sound like a good deal? Not at those prices and not when there are so many other homes to choose from where deals are to be had.

The auction companies are very good at what they do and they get paid well to do it. When there is an auction, you know it. They spend hundreds of thousands to make sure they hype sounding an auction is enormous and ensure hundreds of bidders attend.

My recommendation? For those searching for a home for themselves, go to and bid on an auction if itâ€™s the home you really want, not because you just want a deal. Buying a home for a good deal doesnâ€™t make it any better to come home to if you donâ€™t like the home in the first place. If you do go, bring a realtor. It wonâ€™t cost you anything because you only pay what your bid price is regardless of whether you use one or not. They can help you stay within reality and make sure you donâ€™t over bid and they can help do the homework before the auction. Lastly, donâ€™t bid over 75% of the list price. If that much. There are other homes to be had at good values. Lastly, why not go put an offer in on that home or homes you really wanted for what you expect to pay at an auction and see what happens. You might be surprised. If it doesnâ€™t work outâ€¦ you have an auction to attend.

John

The Truth about Real Estate Auctions and why they might not be right for you.

From the reviews Iâ€™ve read, what Iâ€™ve gleaned of the auction process and the final sales statistics, auctions might and might not be a good deal for a buyer. Are they right for you?

Let â€˜s start with the problem â€“ unsold homes. Why are they unsold? Price. Itâ€™s a simple as that.

Like you may here from practically any real estate professional, price cures all. Even in this economy we still see buyers competing over very good deals on good homes. No matter where the home is, what shape itâ€™s in or what our economy is like, there is a price that will get that home sold as long as the public knows about it.

Price is dictated by supply and demand. If you have a ton of inventory, the price is low. If you only have a couple of something or if anytime something comes on the market itâ€™s swept up with fervor, the price inevitably gets higher.

Right now, we have a TON of inventory. That coupled with our economy and sellers not wanting to loose their shirts, makes pricing a little bit of a moving target. You might just then say, that the price of a home is what someone is willing to pay for it in an arms length transaction.

So why auctions? Is it because there is no other way to sell the property and the controlling entity wants to be done with it at any cost? Youâ€™d think so, but not exactly.

Auctions are just another marketing strategy geared towards getting the seller maximum returns in the least amount of time. Itâ€™s true that sellers want to be done with the project in the least amount of time and that they are willing to except prices below what they are currently listed at but, usually not by as much as youâ€™d think. And, if they donâ€™t get what they are expecting, they take them off the auction block and go back to traditional sales. You can see an instance of this at Seventeen07 and THE 400 in Bremerton.

At Seventeen07 the bidding was getting so low by the end they took homes off the auction block because they knew they wouldnâ€™t get what the seller needed out of them. Which, I might add, was nowhere near what the starting bids were.

At THE 400 there were some good deals to be had. The final bids were near the starting bids and far from what they were originally listed at however, many of the winning bidders were not able to purchase the homes because the bank would allow them to be sold for those low prices. Additionally, there are sometimes hidden reserve prices which, if the bids are not at or above those prices, the seller does not have to sell. Just like Ebay.

When Auction companies approach sellers or the banks with this concept they show them statistics of other successful auctions at which homes sold for approximately 85 to 90% of the original list price (which was priced to high in the first place or it would have sold). They show them that auctions breed urgency in buyers and fear of loss. This is true.

Buyers get so caught up in the â€œcompetitionâ€ and â€œfear of lossâ€ when the bidding is done, they may end up very close to original list price which may or may not have been near market value. You can see an instance of this in THE PRESS condominium auction where the homes ended up selling for 90+% of the original list price.

The way auctions are run these days is a very analytical and precise. They valuate based on number of registrations, number of pre-qualifications, which homes are being sought after based on buyer registrations then calculate how much interest there will be for any given unit and roughly what it will bring at auction. They take the homes with the least amount of interest of the auction block to ensure maximum interest in the ones that are left. They then sell the ones removed the traditional way.

But getting a home at 80-90% of the original list price is still a good deal right? Not in my opinion.

First, it maybe 80-90% of the original list price but like I said before, the original list price was too high to begin with or the home would have sold traditionally. So, really it ends up being more like 90-100% of MARKET VALUE.

Second you donâ€™t get any of the protections you might see in a regular purchase. Auction homes are sold AS-IS. There is no chance for an inspection, title review, homeowners associate review etc. You could do it before hand but not many people spend money on a home before they know they can have it and many donâ€™t know do it because they fail to use the expertise of a seasoned realtor.

Third, you wonâ€™t be able to ask the seller to pay for closing costs, HOD, interest buy-down points, etc. which for many itâ€™s nice to not have to take the money out of your own pocket.

And lastly, the other homes you may have been considering at other communities could possibly be sold to someone else for a great deal. If you donâ€™t win the auction you were after, of for some reason they wonâ€™t let you have your winnings (for reasons stated above), you are now just SOL.

Still sound like a good deal? Not at those prices and not when there are so many other homes to choose from where deals are to be had.

The auction companies are very good at what they do and they get paid well to do it. When there is an auction, you know it. They spend hundreds of thousands to make sure they hype sounding an auction is enormous and ensure hundreds of bidders attend.

My recommendation? For those searching for a home for themselves, go to and bid on an auction if itâ€™s the home you really want, not because you just want a deal. Buying a home for a good deal doesnâ€™t make it any better to come home to if you donâ€™t like the home in the first place. If you do go, bring a realtor. It wonâ€™t cost you anything because you only pay what your bid price is regardless of whether you use one or not. They can help you stay within reality and make sure you donâ€™t over bid and they can help do the homework before the auction. Lastly, donâ€™t bid over 75% of the list price. If that much. There are other homes to be had at good values. Lastly, why not go put an offer in on that home or homes you really wanted for what you expect to pay at an auction and see what happens. You might be surprised. If it doesnâ€™t work outâ€¦ you have an auction to attend.